Inherent powers and refund compliance: High Court upheld a petition to secure refund of deposited tax with interest.

After tax case revisions were allowed on merits, the High Court held that it could still entertain a miscellaneous petition under its inherent powers to secure implementation of its earlier order. A deposit made under an interim order had not been refunded because the departmental order was not given effect to, and the Court held that its power to ensure complete and substantial justice does not end with pronouncement of judgment. It further noted that Rule 34 of the Tamil Nadu General Sales Tax Rules required the assessing authority to give effect to the order and refund excess tax within the stipulated time, failing which interest became payable on delayed refund.

---

---

Issues: Whether, after disposal of the tax case revisions, the Court could entertain a miscellaneous petition under its inherent powers to direct implementation of its earlier order by refunding the amount deposited by the assessee with interest.

Analysis: The amount had been deposited pursuant to an interim order in the tax case revisions, and the revisions were later allowed on merits. The departmental order had not been appealed and had not been given effect to, resulting in non-refund of the deposit. The Court held that its power does not end with pronouncement of judgment and that, to secure complete and substantial justice, it may invoke inherent powers under Section 151 of the Code of Civil Procedure, 1908 to ensure compliance with its own orders. Rule 34 of the Tamil Nadu General Sales Tax Rules also required the assessing authority to give effect to the order and refund excess tax within the stipulated period, failing which interest became payable on delayed refund.

Conclusion: The miscellaneous petition was maintainable and the assessee was entitled to refund of the deposited amount with interest on delayed payment.

---